The post Ethereum Foundation prepares to join DeFi with 50,000 ETH appeared on BitcoinEthereumNews.com.

The Ethereum Foundation will move 50,000 ETH in preparation for joining DeFi protocols. Until recently, the Foundation mostly used its ETH reserves to support smaller projects, often making sales of 100 ETH.  The Ethereum Foundation may start using ETH at scale to join the DeFi space and gain passive income. The Foundation has set aside 50,000 ETH for DeFi, most probably using Aave vaults. The shift to DeFi was announced by an Ethereum Foundation staff member known for his hww.eth address. Stani Kulechov, the founder and CEO of Aave, greeted the decision as a new era for the Ethereum Foundation. So far, the Foundation mostly relied on Cow Protocol for swaps, with few other interactions with DeFi.  This is incredible from EF. This is the beginning of a new era for EF, powering and participating in DeFi on Ethereum. After building 8 years on Ethereum, this feels really good. Thank you for using Aave. https://t.co/a3n0H6rTly — Stani (@StaniKulechov) January 20, 2025 To that end, the Foundation set up a new multi-sig wallet using Safe. The wallet will receive the 50,000 ETH deposit in a few days when all signatures are gathered and the transfer is completed. The move arrives at a time when ETH once again consolidated around $3,300, failing to rally despite the performance of BTC. In addition to the first transfer, the Ethereum Foundation plans to use Safe for long-term fund storage, moving some of its remaining reserves.  The decision follows talks on the role of the Ethereum Foundation, where Vitalik Buterin talked about changing leadership and roles.  Will the Ethereum Foundation get liquidated? Ethereum Foundation will set up a loan on Aave, receiving other assets for depositing its ETH. The biggest risk remains Aave liquidation, which would leave the Foundation with stablecoins while losing the collateral. Aave…

---

Filed under: News - @ January 20, 2025 10:25 pm